Central Bank MLF Increases in Continuation Operation, Medium-term Liquidity Maintains Loose Stance, Focus on Banking Sector Layout Opportunities

GateUser-bd883c58 · 2026-03-26T00:24:52+00:00

The People's Bank of China conducted a 5 trillion yuan MLF operation on March 25, with a net injection of 500 billion yuan, aiming to stabilize market liquidity and ease market concerns about liquidity tightening. Against the backdrop of steady credit growth, there are expectations for improvement in the banking sector's fundamentals.

GateUser-bd883c58

2026-03-26 00:24:52

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Ask AI · What are the policy intentions behind the central bank’s increased MLF operations?

On March 25, the People’s Bank of China will conduct a 500 billion yuan Medium-term Lending Facility (MLF) operation with a fixed amount, bid rate, and multiple bid prices, with a one-year maturity. In March, 450 billion yuan of MLF will mature, which means a net injection of 50 billion yuan in March.

Industry insiders say that this operation continues the trend of the central bank increasing medium-term liquidity injections this year. Especially after the two reductions in outright reverse repurchase operations this month, this move sends a clear signal to stabilize the market, alleviating concerns about potential liquidity tightening and supporting bank performance in both volume and price.

CICC predicts that credit growth will remain stable in the first year of the 14th Five-Year Plan. Looking ahead to the whole year, the industry fundamentals are expected to improve with a relatively certain logic.

As of 10:21 on March 25, 2026, the CSI Bank Index (399986) fell by 0.38%, while constituent Ruifeng Bank rose by 1.85%, Zijin Bank by 1.48%, and Wuxi Bank by 1.22%. Buying on dips or during declines may be good entry points.

Bank ETF Huaxia (515020) tracks the CSI Bank Index (399986) with the lowest comprehensive fee rate among similar ETFs. Its linked fund Class A is 008298; Class C is 008299; Class D is 024642.

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